Credit cards is another problem. Individuals and businesses in the Western world (North America, Europe) are going through a very painful deleveraging (digging out of too much debt). When they have their balance sheets back in order things will start turning around. However, the baby boomers need to start saving like crazy if they want to retire with a half decent nest egg. That may mean the economy will not pick up as much as people are expecting.

The biggest problem moving forward will be credit cards. Hopefully americans will learn to live without relying on them. The fact that those damn companies can now raise your rate for no reason whatsoever should be a huge sign that they are just stupid to have. Glad I don't have any!

Another problem affecting all this mess - but no one seems to be talking about - is the bankruptcy laws passed under the Bush Admin for the financial industry. The republicans, credit card / financial companies re-wrote the laws in 2003 (i think) to restrict the rights of consumers to declare bankruptcy and seek protection. Does anyone else think this financial mess might not be so bad if consumers had their full rights back?

growingmusc saidThe biggest problem moving forward will be credit cards. Hopefully americans will learn to live without relying on them. The fact that those damn companies can now raise your rate for no reason whatsoever should be a huge sign that they are just stupid to have. Glad I don't have any!

Another problem affecting all this mess - but no one seems to be talking about - is the bankruptcy laws passed under the Bush Admin for the financial industry. The republicans, credit card / financial companies re-wrote the laws in 2003 (i think) to restrict the rights of consumers to declare bankruptcy and seek protection. Does anyone else think this financial mess might not be so bad if consumers had their full rights back?